Issue - meetings

The report considers the implications of the recent HMRC increases in tax free mileage rates and recommends minor amendments to the current car user status policy to reflect changes in HR and management practice.

Discussion

The Chief Organisational Culture Officer introduced the report which considered the implications of the recent HMRC increases in tax free mileage rates and recommended minor amendments to the current car user status policy to reflect changes in HR and management practice.

Mileage claim calculation - In response to a query as to why mileage rates were included directly within the policy rather than by reference to HMRC guidance, it was explained that the Council’s scheme was based on local terms and conditions and did not directly mirror HMRC rates. The HMRC changes related solely to the tax-free element of mileage reimbursement. It was acknowledged that the policy was complex and overdue for comprehensive review, particularly in light of emerging issues around hybrid working and anticipated local government reorganisation.

In response to a query it was confirmed that it was not possible to profit from having less distance to travel from home and that whilst the automated system did not pick up anomalies there were checks in place and if any fraud was found disciplinary action could be taken.

In response to a query on the calculation complexity, it was confirmed that contractual arrangements remained linked to an employee’s designated workplace, although hybrid working arrangements had created additional complexities. Existing provisions required employees to deduct their normal commuting mileage when claiming expenses for journeys undertaken from home to alternative work locations. A broader review of travel arrangements was being undertaken as part of the Gun Wharf refurbishment project to develop a new staff travel plan. This work would consider hybrid working arrangements, office capacity, parking allocation, climate change objectives and the future operation of the Council’s mileage scheme.

Electric Vehicle Salary Sacrifice Scheme -  Concerns were raised about potential changes to salary sacrifice arrangements by central government. The Chief Organisational Culture Officer advised that this scheme was regarded as an important employee benefit which they would seek to retain. The situation was being monitored closely.

Members noted the Joint Consultative Committee comments from the earlier meeting which had also raised similar issue discussed above.

Decision

a)       The Employment Matters Committee agreed the new HMRC rates to be reflected in the car and travel allowances policy as set out in Appendix 1 to the report;

b)       The Employment Matters Committee agreed the updates to the car user status policy to reflect changes in HR and management practice as set out in Appendix 2 to the report.